IFRS 13 Fair Value — OpenTuition Forums

JJohn5y ago

Hello! dear tutor, Hope that you are well I am having difficulty understanding the levels of Fair values as outlined in IFRS 13. Could you please explain all the three levels in easy way? Thanks

P2-D2Tutor5y ago#1

Hi, What is it exactly that you do not understand? Thanks

JJohn5y ago#2

I don't understand the 3 levels input completely & what is the purpose of them. Could you please explain them in simple words such as 'quoted market prices that are observable for the asset or liability'

P2-D2Tutor5y ago#3

Hi, The purpose is to give additional guidance on what is a subjective area of accounting (valuation of assets and liabilities) thus allowing the accounts presented to be more useful. Quoted market prices are those on a recognised stock exchange. Have you watched the videos and read the class notes? Thanks